Treasury Secretary Steven Mnuchin provided additional information at the white house briefing today including an important new point: Social Security recipients will not need to file an income tax return to see a direct deposit.
After instruction from President Trump all SSI recipients will participate in the economic relief programs without taking further action. WATCH:
The Department of Labor (DOL) released the unemployment claims data [pdf available here] showing a record 6.6 million Americans applied for unemployment benefits last week due to the coronavirus shut-down.
The 6.6 million claims are double the 3.3 million who made claims last week. Jobless/Unemployment claims, a data-point for layoffs, shows how many workers lose jobs and apply for temporary financial assistance. It is unknown how many people may be re-hired or retained by the rescue funds within the CARES Act. This process is only just beginning.
WASHINGTON, DC – Secretary of Labor Eugene Scalia issued the following statement regarding Unemployment Insurance claims:
“Similar to last week’s unemployment claims numbers, today’s report reflects the sacrifices American workers are making for their families, neighbors, and country in order to ‘slow the spread.’
The ADP payroll report shows a drop of 27,000 jobs, better than the forecast drop of 125,000; but many fear the worst is yet to come as millions of people file unemployment claims as a result of the coronavirus shut-down.
A big unknown question surrounds the number of employees that businesses will attempt to keep on the payroll through use of the coronavirus relief funds passed by congress.
The ADP period in the latest report ran through March 12th. Within that data Goods-producers lost 9K jobs while Services were down twice that much. Small businesses (fewer than 50 employees) were the hardest hit, shedding 90K positions last month; while Large businesses (greater than 500 employees) actually gained 56K jobs; and Medium-sized businesses grew 7K through the March 12th period.
The big question surrounds how quickly small businesses can access the federal relief funds; and whether those businesses will use the incentives to retain their workers.
U.S. Treasury Secretary Steven Mnuchin has announced that small businesses (0 to 500 employees) and sole proprietorships can start applying for the coronavirus relief funds on April 3rd. One week later, April 10th, self-employed individuals, 1099 contractors and s-corps can apply. [Visit SBA.gov/coronavirus]
WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
Treasury Secretary Steven Mnuchin appears on Fox News to discuss the latest developments in the battle against COVID-19 and how the coronavirus economic relief package will roll out. Unfortunately the always insufferable Wallace wants to waste time discussing the politics of the administration effort and not communicate important details to American businesses/individuals about what financial relief efforts are available.
Smartly Secretary Mnuchin outlines the process. The Treasury Department has stood up a system inside the Small Business Administration that cuts through much of the bureaucracy. By using FDIC lenders (local banks) as the point of contact for small businesses and S-corps Treasury can backstop the process. [SEE BELOW]
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The local business (or S-corp) takes their payroll and yearly expense documents to their local bank where they already have a relationship. As long as the bank is in the FDIC network; and because the emergency funds are distributed based on a good faith relationship; the bank gives the business or individual immediate access to funds; the bank deposits in the business account. The FDIC guarantees the lender against any risk.
If the business does not continue payroll for the employees, the funds are considered a loan that must be repaid. However, if the business retains their employees (continues to keep current payroll); or -if needed- rehires any recent lay-offs using the funds provided; then the emergency loan becomes a grant the business will not have to repay. The system should be in place by this Friday.
Oh, this is almost too much winning. Almost… President Trump has appointed White House Manufacturing Advisor Peter Navarro to lead all U.S. coordination of the Defense Production Act. Just like that… presto… Navarro becomes a bazillion times more powerful than CoC President Tom Donohue. Delicious.
WASHNGTON – President Trump announced Friday he is appointing his trade adviser Peter Navarro to serve as his national Defense Production Act policy coordinator after using the act to force General Motors to begin making ventilators to treat coronavirus patients.
“He’s a tremendous guy and he will do a fantastic job,” the president said during a press briefing with his coronavirus taskforce at the White House. He said Navarro will serve as the national Defense Production Act coordinator for the federal government. (link)
Peter Navarro has been a long-term China hawk warning about the risk of U.S. multinationals doing critical supply-chain manufacturing overseas. Navarro, working closely with U.S. Trade Representative Robert Lighthizer, has been the tip of the spear in the execution of America First policy and jobs.
This appointment, and these additional responsibilities, is a recognition for his efforts.
Earlier today President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in the oval office. [Video and Transcript Below]
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[Transcript] – THE PRESIDENT: Well, thank you all very much. This is a very important day. I’ll sign the single-biggest economic relief package in American history and, I must say, or any other package, by the way. It’s twice as large as any relief ever signed. It’s $2.2 billion, but it actually goes up to 6.2 — potentially — billion dollars — trillion dollars. So you’re talking about 6.2 trillion-dollar bill. Nothing like that. And this will deliver urgently needed relief to our nation’s families, workers, and businesses. And that’s what this is all about.
And it got a 96 to nothing. And, I don’t know, what was the number in Congress?
You knew it was going to happen… The U.S. Chamber of Commerce (President Tom Donohue) begins having apoplectic fits at the thought of even stronger Trump administration policies that might undercut their Chinese manufacturing investments.
The U.S. CoC is the biggest stakeholder of U.S. multinational companies doing business in China. The Trump administration has been warning them for years to put America First in their business plans; and now with the Chinese Pandemic showing just how dangerous it is for critical manufacturing to be made in the U.S.A, chamber President Tom Donohue is pleading to keep the U.S. dependent on China.
Keep in mind, this is the EXACT SAME group who said the steel and aluminum tariffs were going to cause massive inflation driving up the price of all consumer goods and cars by thousands of dollars… It never happened; because the CoC are manipulative liars.
WASHINGTON (Reuters) – White House plans to expand “Buy America” mandates to the medical equipment and pharmaceutical sectors could worsen shortages of urgently needed medicines and delay discovery of a vaccine for the new coronavirus, over 80 business groups warned.
On the heels of more than three million new unemployment claims, Treasury Secretary Steven Mnuchin calls in to CNBC for a phone interview to discuss the coronavirus relief bill that passed last night.
Mnuchin was asked about his reaction to seeing the 3.28 million new unemployment claims reported for the past week during the interview. Mnuchin said, “To be honest, I think these numbers right now aren’t relevant whether they’re bigger or shorter in the short term.” WATCH:
